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1. Which provides a better estimate of a projects true rate of return, the MIRR or the regular IRR? Explain. 2. Project X is very

1. Which provides a better estimate of a projects true rate of return, the MIRR or the regular IRR? Explain.

2. Project X is very risky and has an NPV of $3 million. Project Y is very safe and has an NPV of $2.5 million. They are mutually exclusive, and project risk has been properly considered in the NPV analyses.

Which project should be chosen? Explain.

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